When insecurity prevails, it is the operators working in the field of security who see their business flourish. War and political instability are particularly favourable for major groups such as Safran, Thales and Dassault, which are experts in defence technologies. And it must be said that in recent years, the turnover of these companies has increased significantly. Focus on the subject…
Filled order books
Following the numerous attacks on various countries, including France in particular, there is now a feeling of insecurity in the world. For governments, it is therefore practically mandatory to equip themselves with reliable technologies to defend themselves and in particular to ensure the safety of the population. And, of course, it is the suppliers of these technologies who benefit the most:
In particular, the Thales Group is a partner of the Australian Defence Force (ADF), while being a key player in France, and very recently it has just announced a programme to renew the ADF’s submarine fleet, of which it will be the main supplier of equipment.
The Safran group’s order book is also well stocked, with a new tactical UAV system program for the French Army, which includes some 15 aircraft to be delivered, among other equipment. Its security division is also pursuing the development of digital identity programs, and the “Aadhaar” has registered more than a billion Indians since 2011. At the heart of Safran’s activity, LEAP engines and CFM56 engines also accounted for more than 670 units ordered in the first quarter of 2016. And again… this is only a glimpse.
Dassault Aviation also made significant profits through the war. More than half of its order book consists of export defence equipment requests, around 20% for defence in France and more than 25% for Falcon business jets. In 2015, order intake in the Rafale almost doubled for the group in its export division. For 2016, Dassault Aviation plans to deliver around sixty Falcons and about ten Rafales.
In the first quarter of 2016, the Safran group posted sales of more than €4 billion, an increase of just under 8% in one year. And according to his estimates, his turnover for the year 2016 should increase between 2 and 4%.
Dassault Aviation’s forecasts are equally positive, particularly for 2017, when a 5% increase in net income should be recorded. The year 2015 remains the most profitable for the group, with a turnover exceeding 4 billion euros compared to more than 3.6 billion in 2014. Estimated at just under €35 billion, the Australian defence renewal project is also proving very positive for the Thales group’s next figures. This shows that war can really boost these defence players.